Which of the Following Statements Regarding Efficiency Gains Is FALSE

question 9

Multiple Choice

Which of the following statements regarding efficiency gains is FALSE?

• A)Takeovers relying on the improvement of target management are difficult to complete,and post-takeover resistance to change can be great.Thus,not all inefficiently run organizations are necessarily more efficient following a takeover.
• B)Although identifying poorly performing corporations is relatively easy,fixing them is another matter entirely.
• C)A justification that acquirers cite for paying a premium for a target is efficiency gains,which are often achieved through an elimination of duplication.
• D)A chief executive of an inefficiently run corporation can be ousted by current shareholders voting to replace the board of directors,and in fact a large number of ineffective managers are replaced in this way.

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Definitions:

Appropriate

Suitable or proper in the context of particular conditions or circumstances.

Critical Thinking Skills

Critical thinking skills involve the ability to analyze information objectively, evaluate arguments, identify biases, and make reasoned decisions.

Incubation

A stage in the creative problem-solving process during which an individual sets the problem aside and does not consciously think about it, often leading to a solution emerging spontaneously.

Prefrontal Cortex

A region of the frontal lobe of the brain associated with decision making, cognitive behavior, personality expression, and social behavior.